Q1 2025 Yatra Online Inc Earnings Call
Thank you for joining IATRA 1K25 and its conference call. During the presentation, you will have the opportunity to ask a question by pressing star followed by one on your telephone keypad. If you change your mind, please press star followed by two. The call will begin very shortly. Thank you.
Speaker Change: Dhruv Shringarajan, Sarang Sarwanty Garani, Naina Choudhury, V. bolts Rohan Mittal, Manish Hemrajani Indra Andhra Drouga Wareekar, Aadvait interview Vishwanatak Kashyap Dada Shukla, Rajiv Gandhi Aparajita Saxena & Ottawa
Unknown Executive: If you change your mind, please press start followed by two. The call will begin very shortly. Thank you.
Speaker Change: Thank you.
Speaker Change: Shringi, Rohan Mittal, Manish Hemrajani, Manish Hemrajani, Manish Hemrajani,
Kiki: Good morning everyone. Welcome to Yatra 1Q25 earnings conference call. My name is Kiki and I will be your conference operator today. During the presentation you will have the opportunity to ask a question by pressing star followed by one on your telephone keypad. If you change your mind please press star followed by two.
Unknown Speaker: During the presentation, you will have the opportunity to ask a question by pressing star followed by 1 on your telephone keypad. If you change your mind, please press star followed by 2.
Kiki: Call will begin very shortly. Thank you. Unknown Speaker 05, Unknown Speaker 06, Unknown Speaker 07, Unknown Speaker 08, Unknown Speaker [inaudible] Satsang with Mooji Motivational Speech Satsang with Mooji Satsang with Mooji Satsang with Mooji, Manish Hemrajani, Dhruv Shringi, Manish Hemrajani, Rohan Mittal, Yatra Online, Inc. Manish Hemrajani, Dhruv Shringi, Manish Hemrajani, Rohan Mittal, Yatra Online, Inc. Shri M. Sinha, Yatra Online, Inc. Shri M. Sinha, Yatra Online, Inc. Dhruv Shringi, Manish Hemrajani, Rohan Mittal, Yatra Online, Inc. Copyright © 2020 Mooji Media Ltd. All Rights Reserved. No part of this recording may be reproduced without Mooji Media Ltd.'s express consent. Good morning everyone.
Kiki: I will now hand you over to your host, Manish Hemrajani, VP of Corporate Development and IR. Manish, please go ahead.
Speaker Change: Thank you and good morning everyone. Welcome to our fiscal first quarter 2025 financial results for the period ending June 30, 2024. I'm pleased to be joined on the call today by Yatra, CEO and co-founder Druv Shringi and CFO Rohan Mittal.
Speaker Change: The following discussion, including responses to your questions, reflects management views as of today, August 13, 2024.
Speaker Change: We don't take any obligation to update or revise the information.
Speaker Change: Before we begin our formal remarks, let me remind you that certain statements made on today's call may constitute forward-looking statements, which are based on management's current expectations and beliefs.
Speaker Change: and are subject to several risks and uncertainties that could cause actual response to the core material.
Speaker Change: [inaudible]
Speaker Change: for a description of these works.
Speaker Change: Please report all filings with the SEC and a fresh release filed yesterday evening on the IR section of our website.
Speaker Change: With that, let me turn the call over to Dhruv. Dhruv, please go ahead.
Kiki: Welcome to Yatra's 1Q25 earnings conference call. My name is Kiki, and I will be your conference operator today. During the presentation, you will have the opportunity to ask a question by pressing star followed by 1 on your telephone keypad. If you change your mind, please press star followed by 2.
Dhruv Shringarajan: Thank you Manish and good morning everyone and thank you for joining us for a first quarter 2025 earnings call.
Manish Hemrajani: I will now hand you over to your host, Manish Hemrajani, VP of Corporate Development and IR. Manish, please go ahead. Thank you, and good morning everyone.
Dhruv Shringarajan: For the quarter ended June 30, 2024, we reported total revenue of INR 1051 million, which is approximately USD 12.6 million.
Dhruv Shringarajan: This represents a decline of 5% year over year. Adjusted air ticketing margins were impacted by a 21% decrease.
Dhruv Shringarajan: on account of lower volumes. The decline was primarily driven by reduced volumes in the B2C segment as we optimized discounts amid intensifying price competition in the market.
Dhruv Shringarajan: Despite challenges in the B2C segment during the June quarter, the corporate travel segment showed robust growth across all key metrics.
Dhruv Shringarajan: The company successfully secured 34-year corporate customer accounts, representing an annual billing potential of INR 2028 million or approximately $24.3 million, with average billing potential of 77% sequentially.
Manish Hemrajani: Welcome to our fiscal first quarter 2025 financial results. The period ended June 30, 2024. I'm pleased to be joined on the call today by Yatra CEO and co-founder, Dhruv Shringi, and CFO, Rohan Mittal, for a discussion and answering your questions. Reflexed Management News, as of today, on 13th, 2020-4. We don't take any obligation to appeal to our Rabbi. We don't take it as any obligation to appeal to our Rabbi.
Dhruv Shringarajan: As the leader in corporate travel in India, our customer acquisition rates remain strong, consistently outperforming industry benchmarks.
Dhruv Shringarajan: We also continue to actively evaluate strategic opportunities to further bolster our corporate travel segment.
Dhruv Shringarajan: In addition, we made substantial progress in our meetings, incentives, conferences and exhibitions.
Speaker Change: That means, which is the night's Christmas.
Unknown Speaker: Before we begin our formal remarks, let me remind you that certain statements made on today's call may constitute forward-looking statements, which are based on management's current expectations and beliefs and are subject to several risks and uncertainties that could cause actual responses to nuclear material. For a description of these ways, Mr. Koyde, appalling for the FTC. [inaudible] And our first release file yesterday evening in the IR section of our website. With that, let me turn the call over to you... Please go ahead.
Speaker Change: A newly on-boarded team has started ramping up operations.
Speaker Change: And while Mai's contributions were modest for the June quarter, early signs for the current quarter are very encouraging.
Speaker Change: Manish Hemrajani, Rohan Mittal, Manish Hemrajani
Speaker Change: Adjusted EBITDA came in at INR 65.6 million.
Dhruv Shringi: Thank you, Manish, and good morning, everyone, and thank you for joining us for our first quarter 2025 earnings call. For the quarter ended June 30, 2024, we reported total revenue of INR 1051 million, which is approximately USD 12.6 million. This represents a decline of 5% year over year.
Speaker Change: approximately USD 800,000 a decrease from INR 115.4 million in the same period last year, partly reflecting the impact of lower volumes and partly due to the added expense of onboarding teams for new initiatives mentioned earlier.
Kiki: Good morning, everyone. Welcome to Yatra 1Q25 earnings conference call. My name is Kiki, and I will be your conference operator today.
Kiki: During the presentation, you will have the opportunity to ask a question by present star followed by one on your telephone keepet. If you change your mind, please press star followed by two.
Speaker Change: The cost of incremental hires is close to INR 40 million in the quarter. X investment of new initiatives during the quarter, our EBITDA would have been INR 105.6 million, which is broadly similar to last year.
Manish Hemrajani: I will now hand you over to your host Manish Hemrajani, VP of Corporate Development and IR. Manish, please go ahead.
Speaker Change: Let me emphasize the critical importance of accelerating our investment at this time in the corporate space.
Dhruv Shringi: Adopted a ticket in margins were impacted by a 21% decrease. On account of lower volumes, the decline was primarily driven by reduced volumes in the B2C segment as we optimized discounts amid intensifying price competition in the market. Despite challenges in the B2C segment during the June quarter, the corporate travel segment showed robust growth across all three metrics. The company successfully secured 34-year corporate customer accounts, representing an annual building potential of INR 2028 million or approximately 24.3 million dollars, with average winning potential at 77%.
Speaker Change: Over the past few months, and particularly in the last quarter, the country's largest airline has begun offering deeply discounted fares exclusively on its website and mobile apps.
Speaker Change: In light of the recent consolidation within India's domestic aviation sector and the current aircraft supply constraints, this trend is significantly increasing customer acquisition costs in the BTC market.
Dhruv Shringi: As the leader in corporate travel in India, our customer acquisition rates remain strong, consistently outperforming industry benchmarks. We also continue to actively evaluate significant opportunities to further bolster a corporate challenge. In addition, we made substantial progress in our meeting, incentives, conferences, and exhibitions segment, which is the night's segment, this quarter. And newly onboarded teams have started planting their operations, and while night's contributions were modest for the June quarter, early signs for the current quarter are very encouraging, with significant business already secured in the September quarter.
Speaker Change: As a result, it is imperative that we rapidly expand our corporate business and we are actively exploring both organic and inorganic opportunities to achieve this.
Manish Hemrajani: [inaudible] Thank you very much. Thank you very much. [inaudible] I just did it up, you may net INR 65.6 million approximately USC 800,000, a decrease from INR 100 into 14.4 million in the same period last year partly reflecting the impact of lower volumes and partly due to be added expense of on voting fees so new initiatives mentioned earlier. The cost of implementing higher is close to INR 40 million in the quarter. Ex-investment of new initiatives during the quarter or EBITDA would have been INR 105.6 million which is broadly similar to last year.
Speaker Change: The mice industry presents a compelling growth opportunity with its attractive margin profile, making it a strategic addition to our corporate portfolio alongside our visa facilitation and car rental services.
Speaker Change: Additionally, we have initiated a cost optimization program, which includes streamlining over 100 positions within the company. We anticipate realizing the benefit of these cost savings starting in September after accounting for any notice period obligations.
Speaker Change: We continue to make progress towards simplifying our corporate structure as well, with the board appointed restructuring committee actively engaging with all relevant stakeholders. The committee is diligently working on developing a comprehensive proposal to streamline our operations and enhance shareholder values.
Dhruv Shringi: In addition, we have also scaled up teams to focus on the mid-market corporate segment and new products, including visa services and car rental services for. Adjusted EBITDA came in at INR 65.6 million, approximately USD 800,000, a decrease from INR 115.4 million in the same period last year, partly reflecting the impact of lower volumes and partly due to the added expense of onboarding teams for new initiatives mentioned earlier. The cost of incremental hires is close to INR 40 million in the quarter.
Speaker Change: for the quarter ended 30th of June 2024. We reported total revenue of INR 1051 million, which is USD 12.6 million, as I mentioned down 5% year over year, and adjusted revenue of INR 1422 million, which is approximately 17.1 million US dollars.
Speaker Change: which is down 14% year-over-year, mainly on account of the factors that I mentioned about.
Dhruv Shringi: Without the investment in new initiatives during the quarter, our EBITDA would have been INR 105.6 million, which is broadly similar to last year. Let me emphasize the critical importance of accelerating our investment at this time in the corporate space. Over the past few months, and particularly in the last quarter, the country's largest airline has begun offering deeply discounted fares exclusively on its website and mobile app. In light of the recent consolidation within India's domestic aviation sector and the current aircraft supply constraints, this trend is significantly increasing customer acquisition costs in the B2C market.
Speaker Change: While it is our strategy to position ourselves as a corporate provider of choice, we recognize our ideal customer mix must be strategically balanced, and we are determined to winning back and regaining some of our B2C market share by implementing certain strategies in the coming quarter.
R.V. Sarajee: These strategies, we feel, will be more tech-enabled, technology-enabled, and innovation-enabled ones, and will not have a significant negative impact on our operating performance.
R.V. Sarajee: Meanwhile, we continue to expand our corporate customer base demonstrated by the strong addition of new corporate customers during the first quarter.
R.V. Sarajee: We believe that our momentum in garnering reputable corporate clients serves as a testament to our excellent service and attractive platform offerings.
Kavanaughal Williams: Travel volumes in the IT sector, which is one of India's main business travel segments, was subdued in the first quarter of FY25. However, we are pleased to report that our performance in this segment outpaced industrial trends.
Speaker Change: While travel spent on the Yatra platform by IT services customers were approximately 30% below pre-Covid levels.
Speaker Change: Industry reports indicate a nearly 50% decline in overall IT services spent compared to pre-COVID. This demonstrates Jyotsna's ability to capture an increased share of wallets within its existing customer base.
Speaker Change: I would like to also take the time to highlight some of our more recent strategic initiatives to expand our market and growth potential.
Speaker Change: As mentioned last quarter, we've expanded our software service to better meet the needs of our clients through the launch of our expense management solution.
Speaker Change: We are calling this solution RECAP, which stands for Receipt, Capture and Processing. RECAP leverages cutting-edge technologies, including Gen-AI, large-language models, for its receipt analysis to enable more accurate and comprehensive expense tracking, significantly reducing errors and saving time for our customers.
Speaker Change: We are currently working with a handful of customers on the expense fund as part of our pilot program as we look to cross-sell this product further into our current install base.
Manish Hemrajani: Let me emphasize the critical importance of isolating our investment at this time in the corporate space. Over the past few months and particularly in the last quarter the country's largest airline has become offering deeply discounted fair exclusively on its website and mobile app. In light of the recent consolidation within INR is domestic deviation infection and the current aircraft supply constraints. The trend is significantly increasing after my acquisition costs in the DTC market.
Speaker Change: Expense management is a large and highly profitable segment, and our product capabilities make it a product that is suitable not just for the Indian market, but for international markets as well. Our initial response from customers has been very encouraging, and this solution allows us to further deepen our relationship with our customers.
Dhruv Shringi: As a result, it is imperative that we rapidly expand our corporate business, and we are actively exploring both organic and inorganic opportunities to achieve this. The mice industry presents a compelling growth opportunity with its attractive margin profile, making it a strategic addition to our corporate portfolio alongside our visa facilitation and car rental services. Additionally, we have initiated a cost optimization program which includes streamlining over 100 positions within the company.
Speaker Change: With a focus on the corporate segment and a commitment to expanding our presence and offering, as mentioned earlier, we've added a team for the mice segment and the early indications are highly encouraging.
Manish Hemrajani: As a result, it is imperative that we rapidly expand our corporate business and they are actively exploring both organic and inorganic opportunities to achieve this. The mice industry presents a compelling growth opportunity with its attractive margin profile making it a strategic addition to our corporate portfolio alongside our visa facilitation and car rental services. Additionally, we have initiated a cost optimization program which includes streamlining over 100 positions within the company. We are anticipating realizing the benefit of these cost savings happening in September after accounting for any notice needed obligations.
Speaker Change: To provide you some context to the Mahesh market, the Mahesh market is valued at approximately USD 3.3 billion in 2023.
Speaker Change: and is expected to grow to US$10.5 billion by 2030, reflecting a capital of 18%.
Dhruv Shringi: We are anticipating realizing the benefit of these cost series. We continue to make progress towards simplifying our corporate structure as well, with the board-appointed restructuring committee actively engaging with all relevant stakeholders. The committee is diligently working on developing a comprehensive proposal to streamline our operations and enhance shareholder value. For the quarter ended 30 June 2024, we reported total revenue of INR 1551 million, which is USD 12.6 million, down 5% year over year, and adjusted revenue of INR 1422 million, which is approximately 17.1 million US dollars, which is down 14% year over year mainly on account of the factors that I mentioned.
Speaker Change: from 2023 to 2030.
Dhruv Shringi: [inaudible] While it is our strategy to position ourselves as a corporate provider of choice, we recognize our ideal customer mix must be strategically balanced, and we are determined to winning back and regaining some of our B2C market share by implementing certain strategies in the coming quarter. These strategies, we feel will be more tech-enabled, technology-enabled, and innovation-enabled ones, and will not have a technical, negative impact Meanwhile, we continue to explain the copy customer being demonstrated by the strong edition of new. We believe that our momentum in garnering reputable corporate clients serves as a testament to our excellent service and attractive platform offering. Travel volumes in the IT sector, which is one of India's main business travel segments, were subdued in the first quarter of the FI-25.
Dhruv Shringi: However, we are pleased to report that our performance in this segment exceeds that you can. We are pleased to report that our performance in this segment outpaces in this segment in the first quarter of the FI-25. The travel spends on the Yatra platform by IT services customers were approximately 30% of the no pre-COVID levels, and that's why reports indicate a nearly 50% decline in the world of IT services compared to pre-COVID.
Speaker Change: by turning to the broader economic landscape.
Speaker Change: Business travel in India is on an upswing. Currently India ranks as the 9th largest market globally in terms of business travel spend.
Manish Hemrajani: We continue to make progress towards simplifying our corporate structure as well with the both appointed destructuring committee actively engaging with all relevant stakeholders. The committee is diligently working on developing a comprehensive proposal to streamline our operations and enhance shareholder values. What it is a strategy to position ourselves of the corporate provider of choice. We recognize our ID customer mix must be strategically balanced and we are determined to winning back and regaining some of our B2C market share by implementing certain strategies in the coming quarter.
Speaker Change: A market is expected to reach the mid-billion this year and is projected to grow by 18% next year, surpassing pre-pandemic levels.
Dhruv Shringi: This demonstrates Yatra's ability to capture an increased share of wallet within its existing customer base. I would also like to take the time to highlight some of our more recent strategic initiatives to expand our market and growth within. As mentioned last quarter, we've expanded our software service to better meet the needs of our clients with the launch of our expense management solution. We are calling this solution RECAP, which stands for Receipt, Capture, and Processing. RECAP leverages cutting-edge technologies, including Gen-AI and large-language models, for its receipt analysis to enable more accurate and comprehensive expense tracking, significantly reducing errors and saving time for our customers.
Speaker Change: This growth is underpinned by a strong economic outlook for the country, with the Reserve Bank of India projecting real GDP growth of 7.2% in FY25.
Speaker Change: The Reserve Bank of India has also highlighted the positive impact of healthy balance sheets amongst banks and corporates, along with the government's ongoing focus on capital expenditure. And we believe this translates into greater demand in the corporate travel segment in the coming years.
Dhruv Shringi: We are currently working with a handful of customers on the expense fund as part of our pilot program, as we look to cross-sell this product further into our current installations. Thanks for your time. With a focus on the corporate segment and a commitment to expanding our presence and offering, as mentioned earlier, we've added a team for the luxury segment, and the early indications are highly encouraging. The Mahesh market is valued at approximately USD 3.3 billion in 2023 and is expected to grow to USD 10.5 billion by 2030, reflecting a CAGR of 18% from 2023 to 2030.
Dhruv Shringi: We are turning to the broader economic landscape. Business Traveling in India is on an upswing. Currently, India Alliance is the ninth largest market globally in terms of business travel spend. The market is expected to reach late billion this year and is expected to grow by 18% next year. So, parking please on the next level. This growth is underpinned by a strong economic outlook for the country, with the Reserve Bank of India projecting real GDP growth of 7.2% in FY25.
Speaker Change: while domestic travel remains stable.
Dhruv Shringi: The Reserve Bank of India has also highlighted the positive impact of healthy balance sheets amongst banks and corporates, along with the government's ongoing focus on capital expenditure, and we believe this translates into greater demand in the corporate travel segment in the coming years. One domestic travel removal stage, with expected go to be highest in the video. Outbound travel is forecasted to be a significant- A report suggests that India's outbound departures could nearly triple to 50 million by 2030, fueled by improving connectivity, more direct and affordable flights, and a growing desire for international travel.
Speaker Change: with expected growth in the high central region. Outbound travel is forecasted to grow significantly. Reports suggest that India's outbound departures could nearly triple to 50 million by 2030, fueled by improving connectivity, more direct and affordable flights, and a growing desire for international travel.
Dhruv Shringi: Will the June quarter pose challenges for our B2C segment? We are encouraged by the song, and the momentum we have been building in our corporate car with this. The growth in new corporate accounts and the existing development in our MySpaces underscores our commitment to driving long-term value for our state. We continue to implement strategic initiatives to maintain our position in the cockpit sector while working to improve market share and vegan share in the direct to continue effect.
Speaker Change: were the June quarter post challenges for our B2C segment.
Speaker Change: We are encouraged by the strong momentum we are witnessing in our copper travel business.
Manish Hemrajani: These strategies we feel will be more tech-enabled technology enable and innovation enable one and will not have a technical negative impact on our operating performance. Meanwhile, we continue to explain our corporate customer base demonstrated by the strong addition of new corporate customers during the first quarter. We believe that a momentum in gap balancing refitable corporate clients serves as a testament to our excellent service and effective platform offerings. Travel volumes in the IT sector which is one of India's main business travel segments was established in the first quarter of the FY25.
Speaker Change: The growth in new corporate accounts and the existing development in our milestones underscores our commitment to driving long-term value for our stakeholders.
Dhruv Shringi: We continue to find strategic initiatives to maintain your position in the cockpit sector while working to improve market share and vegan share in the direct to continue effect. With that, let me hand the call over to Rohan to walk you through the details of the financials department. Thank you, Dhruv. I will now review a number for the quarter ended 30th June 2024. We saw a 17% worldwide decline in our growth. This was mostly due to the 20% decline in our air cross bookings, as explained earlier. Our hotel and packages business, Scott Bucking, remains flattish. Our overall adjusted margin for the quarter. Chris Vaughan, Team Boss Amarov.
Speaker Change: We continue to fine-tune our strategic initiatives to maintain our position in the corporate sector while working to improve market share and regain share in the direct-to-consumer sector.
Speaker Change: With that, let me hand the call over to Rohan to walk you through the details of the financial department. Rohan?
Rohan Mittal: Thank you, Dhruv.
Rohan Mittal: I will now review our numbers for the quarter ended 30th June 2024.
Manish Hemrajani: However, we are pleased to report that our performance in this segment outpace in that future. While travel spend on the YAPCA platform by IT services customers will approximately 30% the no pre-COVID levels. In that future reports indicate a nearly 30% decline in over our IT services spend compared to pre-COVID. This demonstrates YAPCA's ability to capture and increase share of wallet within its existing customer base.
Rohan Mittal: We saw a 17% ROI decline in our gross bookings.
Dhruv Shringi: Dhruv Shringi, Dhruv Shringi,
Speaker Change: Mostly due to the 20% decline in our air gross bookings, as explained earlier. Our hotel and packages gross bookings remain flattish.
Dhruv Shringi: [inaudible]
Dhruv Shringi: Our overall adjusted margin for the quarter decreased by 15% year over year.
Rohan Mittal: Registered margins for the air ticketing business were at 6.8%, and 11.6% for photos and patterns. Moving on to expenses, as a percentage of total gross booking value, marketing and sales promotion expense was reduced sharply by 35% on a. Our personal expenses increased by 23% yy, as we continue to invest in talent to build out our mid-market, mice, visa, and expense management. Other cops remain immagile.
Dhruv Shringi: Our adjusted margins for the air ticketing business were at 6.8% and 11.6% for hotels and packages.
Manish Hemrajani: I would like to also take the time to highlight some of our more recent strategic initiatives to expand our market and growth potential. As mentioned last quarter, we've expanded our software service to better meet the needs of our clients to be launch of our expense management solution. We are currently working with a handful of customers on the expense fund as part of our pilot program as we look to cross the product further into our current install base.
Dhruv Shringi: Moving on to expenses, as a percentage of total gross booking value, our marketing and sales promotion expenses reduced sharply by 25% on a yy basis.
Dhruv Shringi: Our personal expenses increased by 23% YY as we continue to invest in talent to build out our mid-market, MICE, Visa and expense management solutions.
Rohan Mittal: On an overall basis, adjusted a bit, that was INR 65 compared to one hundred and fifteen million in the quarter. Lastly, as of 30th June, we were carrying cash, cash equivalents, and term deposits. I am 4.5 billion. [inaudible] And the grass stick is at an all-time low. I cannot do anything.
Speaker Change: Other crops remained largely range crop.
Manish Hemrajani: and Manish Hemrajani.
Speaker Change: Lastly, as of 30th of June, we were carrying cash, cash equivalents and termed deposits of INR 4.5 billion, which is approximately USD 54 million on our books.
Manish Hemrajani: Expense management is a large and highly profitable segment and our product capabilities make it a product that is suitable not just for the Indian market but for international markets as well. Our initial response from customers has been very encouraging and the solution allows us to further deepen our relationship with our customers. With our focus on the corporate segment and our commitment to expanding our presence and offering as mentioned earlier, we've added a team for the ninth segment and the early indications are highly encouraging.
Speaker Change: And our gross debt is to an all-time low level of INR 210 million, which is roughly USD 2.5 million.
Unknown Speaker: Please apply your Zito.5. [inaudible] With this, we conclude our prepared remarks, and I'd like to hand it over to the moderator for Q&A. The person you are speaking with has put your call on hold. Please stay on the line.
Speaker Change: With this, we conclude our prepared remarks and I'd like to hand it over to the moderator for Q&A. Thank you.
Speaker Change: The person you are speaking with has put your call on hold. Please stay on the line.
Manish Hemrajani: To provide you some context to the might market, the might market is valued at approximately USD 3.3 billion in 2023 and is expected to grow to US dollars 10.5 billion by 2030, deflecting a Kaiser of 18% from 2023 to 2030.
Speaker Change: You are talking to this person. He has opened your call. Thank you very much.
Unknown Speaker: If you would like to ask a question, please press star followed by one on your telephone. If you change your mind, please press star followed by one. When preparing to ask your question, please ensure your device is muted. Look. The first question we received is from Scott Beck from H.C. Wingride. Scott, your line is open. Please go ahead. Hello, everyone.
Speaker Change: If you would like to ask a question, please press star followed by 1 on your telephone keypad. If you change your mind, please press star followed by 2.
Manish Hemrajani: Now, turning to the broader economic landscape business travel in India is on an upstream currently in the alliance with the ninth largest market globally in terms of business travel spend. The market is expected to reach the mid-billion this year and is expected to grow by 18% next year to passing three pandemic levels. This growth is underpinned by a strong economic outlook for the country with a reserve backup India projecting real GDP growth of 7.2% in a 525.
Speaker Change: When preparing to ask a question, please ensure your device is unmuted locally.
Speaker Change: The first question we received is from Scott Beck from HC Wainwright. Scott, your line is open, please go ahead.
Scott Beck: Thank you for taking my question. Dhruv, you touched on it in your prepared remarks, but could you give us a little more color on what options are on the table in regards to the independent committee and maybe what a reasonable timeline is to expect some decisions to be made? So, with regard to the independent committee, the committee is currently working with advisors on evaluating the multiple options in kind of our sports and defending our corporate section.
Scott Beck: Hello everyone. Thank you for taking my questions. Dhruv, you touched on it in the prepared remarks, but could you give us a little more color on what options are on the table in regards to the independent committee? And maybe what a reasonable timeline is to expect some decisions to be made?
Manish Hemrajani: The reserve bank of India has also highlighted the positive impact of healthy balance sheets among times and coffers along with the government ongoing focus and capital expenditure. And we believe this translates into greater demand and the corporate travel segment in the coming years. While domestic travel remains stated with expected growth in the highest in the region, outbound travel is forecast to grow significantly. Reports suggest that the India's outbound departures will nearly triple to 50 million by 2030 fueled by improving connectivity, more direct and affordable flights and are growing desire for international travel.
Scott Beck: There are a couple of proposals that we've narrowed this down to, and now the committee, along with the writers, is working with the regulators to understand the process and the feasibility of the different structures that you know are there in front of the company. [inaudible] In terms of timeline, I think the structures which are there are- A 6 to 12 month time to put online in terms of achieving full simplification of the talk.
Dhruv: So, with regards to the independent committee, the committee is currently working with advisors on evaluating the multiple options in front of us for simplifying our corporate structure. There are a couple of preferred routes that we've narrowed this down to.
Dhruv: and now the committee along with the advisors is working with the regulators to understand the process and the feasibility of the different structures that are there in front of the company.
Dhruv: In terms of timeline, I think the structures which are there are a 6-12 month kind of a timeline in terms of achieving full simplification of the process.
Manish Hemrajani: When the June quarter post challenges for our BTC segment, we are encouraged by the song, the momentum we are witnessing in our corporate travel business. The growth in new corporate accounts in the existing development in our minds, which is underscores our commitment to driving long-term value for our stakeholders. We continue to find new strategic initiatives to maintain our position in the corporate sector while working to improve market share and regain share in the direct to consumer sector.
Scott Beck: This is, you know, in certain scenarios, dependent on regulators and different jurisdictions. This is only a broad guideline, but I can share with you not an exact number, as I said, because there are multiple regulators involved in the process.
Dhruv: This is, in certain scenarios, dependent on regulators and different jurisdictions. This is only a broad guideline, but I can share with you, not an exact number, as I said, because there are multiple regulators which are involved in the process.
Dhruv Shringi: Sure, I can understand that. And is the goal here to create some sort of fungibility between, between the shares, The Shares, The Shares, The Shares, That is the end objective, to try and create a way through which the shareholders in the U.S. will get access directly to the Indian stock. Okay, perfect. I appreciate that color.
Dhruv: Sure, I can understand that. And is the goal here to create some sort of fungibility between the shares?
Rohan Mittal: With that, let me hand the call over to Rohan to walk you through the details of the financial system. Rohan, thank you, Roof.
Speaker Change: That is the end objective, to try and create a way through which the shareholders in the U.S. will get access directly to the India stock.
Rohan Mittal: I will now review our numbers for the quarter ended 30 June 2024. We saw a 17% worldwide decline in our growth. This was mostly due to the 20% decline in our air growth bookings, I explained earlier. Our hotel and packages growth bookings remain sluggish. Our overall adjusted margin for the quarter, decreased by 15% worldwide. Our adjusted margin for the air ticketing business was at 6.8% and 11.6% for hotels and packages. Moving on to expenses, as a percentage of total growth bookings value, our marketing and sales promotion expenses reduced sharply by 25% on our worldwide basis.
Dhruv Shringi: Next, I want to ask about the B2C weakness. I'm curious, how much of that that you saw in the quarter is being driven by, you know, just kind of temporary softness in travel demand versus what, you know, maybe more permanent headwind and, you know, direct sales of tickets from India's largest carrier? So there are two factors playing in right now. One is the supply side constraint. So, like I had mentioned in our last earnings call, 75 aircraft were taken out by Indigo because of the issue that they were facing with the fact that the engines.
Speaker Change: Okay perfect, I appreciate that color. Next, I want to ask about the B2C weakness.
Speaker Change: What of that that you saw in the quarter is being driven by just kind of temporary softness in travel demand versus what may be more permanent headwind and direct sales of tickets from India's largest carrier?
Dhruv Shringi: This is a very publicized litigation and issue which is going on between Indigo and Pat and Whitney. So that's the one thing which is there on account of which access is limited in the country. So that's the one thing which is there on account of which is limited in the country. The other challenge which is there, which has gotten accentuated, is the view that IndiGo has started taking over the course of the last six months, and more so in the last quarter, of offering fares directly on its site, which are meaningfully cheaper than what is available through third-party distribution channels.
Speaker Change: So there are two factors playing in right now. One is the supply-side constraint.
Speaker Change: So, as I had mentioned in our last earnings call, 75 aircrafts were taken out by Indigo because of the issue that they were facing with the Pratt & Whitney engines. This is a well-publicized litigation and issue which is going on between Indigo and Pratt & Whitney.
Rohan Mittal: Our personal expenses increased by 23% worldwide as we continue to invest in talent to build out our mid market, mice, visa and expense management solutions. Other costs remained large here in Scott. On an overall basis, adjusted the data was INR 65.6 million, compared to INR 115 million in the quarter and the June 24. Lastly, as a certificate of June, we were carrying cash, cash, equivalents and parent deposits of INR 4.5 billion, which is approximately USD 54 million on our books. And our gross debt is to an all-time low level of INR 210 million, which is roughly USD 2.5 million.
Speaker Change: So that's the one thing which is there on account of which supply is limited in the country.
Speaker Change: The other challenge which is there, which has got accentuated, is the view that IndiGo has started taking over the course of the last six months, and more so in the last quarter, of offering fares directly on its site which are meaningfully cheaper than what are available through third-party distribution channels.
Dhruv Shringi: That, I think, is the bigger and more controlling trend I'm dealing with at this point. Okay, that makes sense. I feel, you know, obviously, when it gets solved, right, it's just a matter of silence that supply will get addressed. So, those engagements get prepared. Though the class will come backward.
Speaker Change: That, I think, is the bigger and more concerning trend that we are witnessing at this point of time.
Dhruv Shringi: So whether it happens with the delay of a quarter or two, that's, you know, between Indigo and starting with me to figure out that the supply will come back, whereas this is potentially a good potentially turn into a more secular trend while their discussions, which are happening between the airlines and the intermediaries in the country, come to an equilibrium. Okay, that's helpful. And then last one for me on the mic business. It's nice to see you guys are starting to see some favorable momentum there.
Speaker Change: The supply side of the exchange, I feel, you know, obviously will get solved, right? It's just a matter of finding that supply will get addressed.
Unknown Executive: With this, we conclude our potato remarks and I'd like to hand it over to the moderator for Q&A. Thank you. The person you are speaking with has put your call on hold, please stay on the line.
Speaker Change: So, those engines won't get repaired, those exhausts will come back, right? So, whether it happens with a delay of a quarter or two, that's, you know, between Indigo and Titan, we'll need to figure out, but the supply will come back. Whereas, this could potentially turn into a more secular trend.
Speaker Change: Thank you very much.
Unknown Executive: If you would like to ask a question, please press staff followed by one on your telephone keypad. If you change your mind, please press staff followed by two. When preparing to ask your question, please ensure your device is muted locally.
Speaker Change: Okay, that's helpful. And then last one for me on the mic business.
Speaker Change: It's nice to see you guys are starting to see some favorable momentum there. What is the typical contract structure? Are your customers under annual or multi-year contracts there? Just trying to understand from a visibility standpoint.
Dhruv Shringi: What is the typical contract structure? Are your customers under annual or multi-year contracts there? Just trying to understand from a visibility standpoint.
Scott Beck: The first question we received is from Scott Beck from H.C. Wingrig. Scott, your line is open. Please go ahead. Hello, everyone. Thank you. Thank you for taking my question.
Dhruv Shringi: So, there are some customers at this point in time given that it's still relatively early days. There are annual contracts which exist, and then there will also be some which are more event-based and large event and cycle based contracts.
Speaker Change: So, there are some customers at this point of time, given that it's still relatively early days, there are annual contracts which exist and there will also be some which are more event based and large event and cycle based contracts.
Unknown Executive: Drew, have you touched on it in the prepared remarks, but could you give us a little more color on what options are on the table in regards to the independent committee and maybe what a reasonable timeline is to expect some decisions to be made? So, with regards to the independent committee, the committee is currently working with the advisor on evaluating the multiple options in kind of our sports and defining our corporate structure.
Speaker Change: We are not yet at a stage like our business saddle where we have multi-year contracts. Here we are not yet at that stage where we are signing straight off the bat multi-year contracts.
Dhruv Shringi: These are mostly short to mid-term kind of contracts which are there as opposed to multi-year contracts. But as the business progresses and stabilizes, this should translate into multi-accomplishment. Okay, perfect. Well, I appreciate the call, guys. Thank you very much. Not at all.
Unknown Executive: There are a couple of preferred groups that we've narrowed this down to and now the committee along with the advisor is working with the regulators to understand the process and the feasibility of the different structures that are there in front of the company. In terms of timeline, I think the structures which are there are a 6 to 12 month time of a timeline in terms of achieving full simplification of the process.
Speaker Change: These are short to mid-term contracts which are there as opposed to multi-year contracts.
Speaker Change: But as the business progresses and stabilizes, this should translate into multi-year contracts.
Speaker Change: Okay, perfect. Well, I appreciate the call, guys. Thank you very much.
Speaker Change: Not at all. Thank you, Scott.
Scott Beck: Thank you, Scott. The next question is from Amish Mahel from Private Investor. The line is now open, please go ahead. Hello, good morning. Thanks for taking my question. I have a couple of questions.
Speaker Change: The next question is from Amish Mahel from Private Investor. The line is now open, please go ahead.
Amish Mahel: One is, what percentage of your online business is it going to see. I thought it was a very, very small portion. So for this to have a 20% impact on your revenue seems a bit much. The second is, let's say, the largest carrier's position to go direct to customers. Does that not also affect your COVID business? And maybe a third relevant question is, how is it that companies like MakeMyTrip don't seem to have been impacted by the same things that you're pointing out?
Speaker Change: Hello, good morning. Thanks for taking my question. I have a couple of questions. One is what percentage of your airline business is B2C? I thought it was a very very small portion.
Unknown Executive: This is, you know, in certain scenarios, dependent on regulators and different jurisdictions. So, this is only a broad guideline that I can share with you and not an exact number. As I said, because they are multiple regulators, which are involved in the process. Sure, I can understand that.
Speaker Change: So for this to have a 20% impact on your revenue seems a bit much. The second is
Unknown Executive: And it is the goal here to create some sort of fungibility between the shares. That is the end objective to try and create a way to which the shareholders in the US will get access to the key to the desktop. Okay, perfect. I appreciate that color.
Speaker Change: Let's say the largest carrier's decision to go direct to customers, does it not also affect your corporate business?
Speaker Change: And maybe a third relevant question is, how is it that companies like MakeMyTrip don't seem to have been impacted by the same issues that you're pointing out? Sorry for lots of questions, but I can repeat definitely as needed.
Unknown Executive: Next, I want to ask about the B to see weakness. I'm curious.
Dhruv Shringi: Sorry for the lots of questions, but I can definitely repeat as- Thank you for the question. Let me clarify the first point in terms of the share. And you would have heard this on multiple calls from us. The BTC business last year was accounting for almost between 35 to 60 percent of our gross growth. So it's not an insignificant part of our business; it's a fairly substantial part of our business.
Unknown Executive: What about that you saw in the quarters being driven by, you know, just kind of temporary softness and travel demand versus what, you know, maybe more permanent headwind and, you know, direct sales of tickets from India's largest carrier. So there are two factors playing in right now. One is the supply side constraint. So as I had mentioned in our last earnings call, 75 aircraft are taken out by Indigo because of the issue that they were facing with the fact that the engines.
Speaker Change: Thank you for the question. So let me clarify the first point in terms of the share and you would have heard this on multiple calls from us. The B2C business till last year was accounting for almost 50, between 55 to 60 percent of our gross bookings.
Speaker Change: So, it's not an insignificant part of our business, it's a fairly material part of our business. And that's the reason why the overall impact on the gross bookings.
Dhruv Shringi: And that's the reason why the overall impact on gross bookings is because of what's happening. Secondly, in terms of us and MakeMethod, the impact on MakeMethod is exactly the same as the impact that we are facing. The only difference that is there is that MakeMarket has taken the view of discounting on Air India and Vispara, which is the other airline in the country, quite meaningfully, to offset some of the volume that they're losing on Indigo. You could do a quick search on any of the comparison platforms like Skyscanner or Google Flies, and you'll be able to validate that.
Speaker Change: Thank you.
Unknown Executive: This is a very publicized litigation and issue, which is going on between Indigo and Pat and Whitney. So that's the one thing, which is there on account of which apply is limited in the country. The other challenge, which is there, which is kind of accentuated is the view that Indigo has parted taking over the course of the last six months and more so in the last quarter. So, hopefully fairs directly on a site, which are meaningfully cheaper, then what are available to third party resolution channels. That I think is the bigger and more controlling trend at the addressing at this point of time.
Speaker Change: The only difference which is there is that MakeMarket has taken the view of discounting on Air India and Vispara which is the other airline in the country quite meaningfully.
Speaker Change: Rohan Mittal, Manish Hemrajani, Rohan Mittal, Rohan Mittal, Rohan Mittal, Rohan Mittal, Rohan
Dhruv Shringi: In terms of overall numbers, obviously, MakeMarket has a scale advantage on hotels. I am a boss from there, generating incremental profits which are helping them subsidize some of this work investment on the outside. But the challenge that we are facing is something that everyone in the country is facing, not just us.
Speaker Change: and Buffs from where they are generating incremental profits which are helping them subsidize some of this gross investment on the air side. But the challenge that we are facing is something that everyone in the country is facing, not just us.
Unknown Executive: Okay, that makes sense. You know, obviously, we get solved, right. This is a matter of silence that supply will get a best. So though they will get prepared, though the class will come backwards, whether it happens with the delay of a quarter or two, that's, you know, between Indigo and Pat. But need to figure out that the supply will come back, whereas this is a good potentially turn into a more secular trend, while their discussions, which are happening between the airline and the intermediaries in the country. It will come to an equilibrium.
Dhruv Shringi: Here, the third point on the corporate side is why would this not flow into the cupboards again. The reason behind that, in fact, on the corporate side, it's a managed travel service where corporate employees have to go to our platform to book their business travel needs. And typically, what happens is these kinds of things, which are offered on the airline site, which are direct, are the most restrictive fare with the least amount of value attached to them, whereas corporate travel is 95, which are the corporate bookings that happen.
Speaker Change: to your third point on the corporate side as to why would this not flow into the corporate segment.
Speaker Change: The reason behind that is that on the corporate side, it's the managed travel services where corporate employees have to go through our platform to book.
Speaker Change: The Business Service Lead.
Speaker Change: And typically what happens is these kinds of fares, which are offered on the airline site, which are direct, are the most restrictive fares with the least amount of value-adds attached to them. Whereas corporate travellers, 95% of the corporate bookings that happen, happen on special corporate rates.
Dhruv Shringi: I don't know, special corporate rates, which come in a bundle with other flexibility, like cancellation, protection of free food, being bundled with it means being bundled with it, and that is not for something that is going to come for it. The other thing which is also there is the coffee cab scenario. This imagines a scenario where a company which employs 50,000 people has to then manage their employees going and booking Indigo flights or some part of their Indigo bookings directly coming back and claiming that while the rest of their travel is managed through the Yatra application and the Yatra portal for their business travel needs, including their approval process, including their excellent management, etc.
Unknown Executive: Okay, that's helpful.
Unknown Executive: And then last one for me on the mic business. It's nice to see you guys are starting to see some favorable momentum there. What is the typical contract structure? Are your customers under annual or multi year contracts there? Just trying to understand from a visibility standpoint. So there are some customers at this point of time given that it's still relatively early days. There are annual contracts which exist and then also be some which are more event based and large event and cycle based contracts.
Speaker Change: which come in bundled with other flexibility like cancellation protection, a free seat being bundled with it, meals being bundled with it and that is not something that Indigo discounts directly.
Speaker Change: The other thing which is also there is that on the Coptic taboo stunt,
Speaker Change: This entire scenario where a company which employs 50,000 people
Dhruv Shringi: So that's not really a scenario which is quite easy for an airline to replicate. And even globally, if you look at the examples of people like Pathways, Ryanair, and EasyJet, their focus is on the leisure travel segment in terms of these kinds of promotional fairs that they offer on their own next time; this is not targeting business travel. These sales, also, just to give you an indication, typically will be there for advance booking. That's where the bulk of the leisure travel happens.
Speaker Change: has to then manage.
Speaker Change: their employees going and booking indigo flights or some part of their indigo bookings directly coming back and claiming that well the rest of their travel is managed through the Yatra application and the Yatra portal for their business travel needs including the approval process including their expense management etc.
Unknown Executive: They are not yet at a stage like our business has already had multi year contracts. Here we are not yet at that stage where the signing streak of the back multi year contracts. Yeah, these are more, you know, shots to make them kind of contracts each other as opposed to multi year contracts. But as the business progresses and stabilizers, this should translate into multi year contracts.
Speaker Change: So that's not only a scenario which is quite easy for an airline to replicate, and even globally if you look at the examples of people like Towsways, Ryanair, EasyJet.
Speaker Change: Their focus is on the leisure travel segment in terms of these kinds of promotional fairs that they offer on their own website, which is not targeting the business travelers.
Scott Beck: Okay, perfect. Well, I appreciate the color guys. Thank you very much. Not at all. Thank you Scott.
Dhruv Shringi: Whereas business travel typically happens in a D minus three, which is the travel date, minus three days, kind of booking window. In that window, these sales are typically not. (inaudible) I hope that clarifies your question. Yeah, you did.
Speaker Change: These fairs, also just to give you an indication, typically will be there for advanced cooking.
Amish Mahal: The next question is from Amish Mahal from Previct in the staff which the line is not open. Please go ahead. Hello, morning. Thanks for taking me question. I have a couple of questions. One is, what percentage of your airline business is B2C? I thought it was a very, very small portion. So, for this to have a 20% impact on your revenue seems a bit much. The second is, let's say the largest scariest decision to go direct to customers, does it not also affect your corporate business.
Speaker Change: Manish Hemrajani, Rohan Mittal, Manish Hemrajani
Amish Mahal: And maybe a third element question is, how is it that companies like Make My Trip don't seem to have an impact by the same issues that you're pointing out? Sorry for the loss of questions, but I can repeat definitely as needed. No, thanks. Thank you for the question. Let me clarify the first point in terms of the share. And you would have heard this on multiple calls from us. The B2C business still lasts year was accounting for almost 50, between 35 to 60% of our gross bookings.
Dhruv Shringi: Thanks a lot. I mean, I really appreciate the details behind it. Just an additional question, if I may, the meeting management solution that or expense management tool that you launched, do you already have some traction with the target market segment that you're targeting? Yeah, so we are currently running a pilot of that with a few of our customers, with a handful of our customers; that's the first phase. We are also in discussions with some of our larger customers to see if this can replace more extensive global solutions which are currently being used by these larger customers.
Speaker Change: I hope that clarifies your questions.
Speaker Change: Yeah, you did. Thanks a lot. I mean, really appreciate the details behind it. Just an additional question, if I may. The meeting management solution...
Speaker Change: that or expense management tool that you launched.
Speaker Change: Do you already have some traction with the mid-market segment that you are targeting? That's the question.
Speaker Change: We are currently running a pilot of that with a handful of our customers. That's the first phase which is there. We are also in discussion with some of our larger customers to see if this can replace more expensive global solutions.
Speaker Change: Manish Hemrajani, Rohan Mittal, Manish Hemrajani
Speaker Change: Thank you.
Manish Hemrajani: Thank you.
Dhruv Shringi: But the initial subset that we are targeting is more in the mid-tier segment. Thank you. Thank you. Thank you. The next question is from Cobb Sadler from Kathmandu. The line is now open; please go ahead. Hey guys, I have a question about the potential acquisitions that you may do. I think it was two, one or more than two.
Manish Hemrajani: Thank you.
Manish Hemrajani: The next question is from Cobb Settler from Katamont. The line is now open, please go ahead.
Amish Mahal: So, it's not a moon secret that you can part about business is for fairly material part of our business. And that's the reason why the overall impact on the gross bookings because of what's happening. Secondly, in terms of between us and Make My Trip, the impact on Make My Trip is exactly the same as the impact that we are facing. The only predictions which is there is that Make My Trip has taken the view of discounting on Air India and the SARA, which is the other airline in the country, quite meaningfully, to offset some of the volume that they're using on Indigo.
Cobb Sadler: And then also, what is the revenue size of these deals as it relates to the corporate business? I mean, is it going to double the corporate business? 20%, 50%, and then I have some follow-ups. Thank you.
Cobb Settler: Hey guys, I have a question on the the potential acquisitions that you may do. I think it was a two, one or more than two.
Cobb Settler: And then also, what is the revenue size of these deals as it relates to the corporate business? I mean, is it going to double the corporate business?
Speaker Change: 20%, 50%, and then I have some follow-ups.
Amish Mahal: You could do a quick search on any of their comparison platforms, like stats, kind of a Google slide, and you'll be able to validate that. In terms of overall numbers, obviously Make My Trip has a scale advantage on what else. And that's where they are there generating incremental profits, which are helping them subsidize some of this growth investment on the air side. But the challenge that we are facing is something that everyone in the country is facing, not just us.
Speaker Change: Thank you very much.
Dhruv Shringi: Sure. So these are the deals that are currently in progress. It's hard for me to comment on an exact timing for ongoing discussions or dialogues that may or may not be happening. We said that we were evaluating multiple options. It's hard to give an exact timing for the closure of any of the acquisitions. I don't want to set any expectations in terms of timing for the closure for interviews.
Sivka: Sure. Sivka, these are the deals which are currently…
Speaker Change: It's hard for me to comment on an exact timing for ongoing discussions or dialogues that may or may not be happening.
Speaker Change: We have said that we are evaluating multiple options, it is hard to give an exact timing to closure of any of the acquisitions, I don't want to set any expectations in terms of timing from a closure point of view.
Amish Mahal: To a third point on the comfort side is to why would this not flow into the comforts. Again, the reason behind that is that on the comfort side, it's a managed travel services where comfort employees have to go to our platform to book their business travel needs. And typically what happens is these kinds of things which are offered on the airline site, which I got it. Are the most restrictive sales with the least amount of value as attached to them, whereas corporate travel is 95% of the corporate bookings that happen happen on special corporate rate, which come in bundle with other flexibility, like cancellation, collection of free foods being bundled with it means being bundled with it.
Dhruv Shringi: These are discussions that are ongoing, and there are multiple such discussions ongoing. Our endeavor through the M&A part, and if I look at you now, I can guide you to what we have said from an IPO standpoint: we have earmarked approximately $20 million for an acquisition or for multiple acquisitions. Whether the sounds are placed into one or multiple actions will be, you know, once it's crystallized, I will be able to share more details on it.
Speaker Change: These are discussions which are ongoing and there are multiple such discussions which are ongoing.
Speaker Change: news agency.
Speaker Change: Thank you.
Dhruv Shringi: Until such time, there is no commitment in terms of that there is an acquisition which is actively going to happen in the near term. Okay, so, but, all right, well, but you have aspirations to close and be allowed, I would assume. And so in the number, was that $20 million; what would you pay, or the revenue? that you'd like to add. So 20 minutes; hopefully, you have set aside as I feel close to you.
Amish Mahal: And that is not for something that Indigo becomes directly the other thing, which is also there is a on the comfort travel fund. This end of the scenario where a company which enjoys a few thousand people has to then manage their employees going and booking Indigo flights or some part of their Indigo bookings directly coming back and claiming that while the rest of their travel is managed through the other application and the other photo for their business travel needs, including their approval process, including their excellent investment etc.
Speaker Change: Okay so but all right well but you have aspirations to close and deal I would assume and so in the number was that twenty million dollars what you would pay or the revenue?
Speaker Change: which you'd like to add?
Dhruv Shringi: In terms of an, Okay, so you're in the middle of it. You know, or after 20 million dollars, that would be the payout for acquisitions. This could be a single acquisition, or this could be for multiple acquisitions. Could you also start also, what are the, you have to call out, what are the, you end users of the IP of proceed, and then at the end, you can be in their IPO, with your mark, pay approximately $200,000 for the IP or for. Okay, and would you use cash solely, or could you use stock also and buy more revenue?
Speaker Change: in terms of an accumulation.
Speaker Change: Thank you.
Amish Mahal: So that's not really a scenario, which is quite easy for an airline to replicate. And even globally, if you look at the examples of people like Southwest, Ryan and EasyJet, their focus is on the leisure travel segment in terms of these kinds of promotional fairs that they offer on their own that time, this is not targeting the business travel. These sales also just to give you an indication typically will be there for advance booking.
Speaker Change: Could you use stock also or the 29-unit cap?
Speaker Change: What are the end uses of the IPO proceeds?
Speaker Change: and in the end use in the Indian IPO, VPMR play approximately $20 million for acquisitions.
Amish Mahal: That's where the bulk of the leisure travel happens, whereas business travel typically happens in a D-3, which is travel date, 5-3 days, and a booking window. In that window, these sales are typically not available. I hope that clarifies your questions. You did thanks a lot.
Speaker Change: Okay and you would use cash solely or could you use stock also and buy more revenue?
Dhruv Shringi: Yes, so we could use stock as well. There is nothing that holds us back from doing a stock plus a cash fee. Okay, I got it. All right. And the timing, I mean, how long have you been at this, like, I guess, like, "Why don't you have an ID on time?" Rob. Your question is then implying that there is an active acquisition which is ongoing, and I'm clarifying that, you know, I can either confirm or deny any such thing, but there is an active acquisition conversation that is going on. Okay, all right, let's hear it. And then, on the fungibility of shares. Did I get this right?
Speaker Change: Yes, so we could use stock as well. There is nothing that holds us back from doing a stock, profit, cash deal.
Speaker Change: Okay, got it. All right.
Amish Mahal: I mean, really appreciate the details behind it.
Speaker Change: And the timing, I mean, how long have you been at this? Like, I guess, like, you know...
Amish Mahal: Just an additional question, if I may, the meeting management solution, that or expense management tool that you launched, do you already have some traction with the bed market segment that you are targeting? That's the question.
Speaker Change: Why don't you have an idea on timing?
Speaker Change: Q. Your question is then implying that there is an active acquisition which is ongoing and I am clarifying that I can neither confirm nor deny any such thing that there is an active acquisition conversation that is going on.
Unknown Executive: Yeah, so we are currently running a pilot of that with a few of our customers, with a handful of our customers.
Unknown Executive: That's the first phase which is there. We are also in discussion with some of our larger customers to see if this can replace more extensive global solutions, which are currently being used by the larger customers. But the initial process that we are targeting is the mode on the mid-tier segment.
Unknown Executive: Thank you.
Speaker Change: Okay, all right, let's hear it. And then on the fungibility of shares...
Cobb Sadler: You said six to 12 months. Do you think you'd have an answer there? Or is that an answer to, Was that what the question was? Was, How long will it take you? My question is, how long will it take you to know whether or not the shares will be fundable? And the other question is, what do you think that the Indian investor base would think about that? I mean, I'm guessing they don't. The structure, as I understand it, you're kind of the first dual listing company in India.
Speaker Change: Did I get this right? You said six to twelve months. You think you have an answer there or is that an answer to...
Cobb Sadler: And so my guess is they're all confused, as probably all investors are about the structure. So you think that would be a positive for them if you were able to collapse the structure, but that's one question.
Speaker Change: Was that a, was that a, the question was, was...
Speaker Change: My question is, how long will it take you to know whether or not the shares will be fungible? And the other question is, what do you think that the...
Kopsetler: The next question is from Kopsetler from Atomwant. The line is now open. Please go ahead. Hey guys, I have a question on the particular acquisition that you may do. I think it was a two, one or more than two. And then also, what is the revenue size of these deals, is it related to the corporate business? I mean, is it going to double the corporate business? 20%, 50%, and then that's in follow-ups. The government. Sorry, in the timing of completion of these deals, so I go ahead. Sure. So, these are, you know, beans which are currently.
Speaker Change: Indian investor base would think about that. I mean, I'm guessing they don't, the structure, as I understand it, you're kind of the first.
Speaker Change: dual listing company in India. And so my guess is they're all confused, as probably all investors are about.
Dhruv Shringi: And then, do I have it right that you think that fundability, if it were to occur, would occur within six to 12 months? So, in terms of the second part, based on the discussions that we've had with various advisors across multiple jurists, 60-12 months could potentially be the timeline for a fungibility event. As it has been written, there are multiple regulators involved in this.
Speaker Change: about the structure. So you think that would be a positive for them if you were able to collapse the structure? That's one question. And then do I have it right that you think that fungibility, if it were to occur, would occur within six to twelve months?
Speaker Change: Yeah, so in terms of the second part, based on the discussions that we've had with various advisors across multiple jurisdictions.
Dhruv Shringi: It could be a lengthy process. But our best estimate at this point, based on the advice that we have from the council that we have in different jurisdictions, is that it is an event which could take up to 12 months. Okay, and then the multiple, multiple regulatory agencies or bodies that are involved is that you probably have the SEC and you probably have SEBI. Are there other regulatory agencies or bodies that are involved?
Unknown Executive: It's hard to make a comment on an exact timing for ongoing discussions or dialogues that may or may not be happening. We said that we are evaluating multiple options. It's hard to give an exact timing to closer of any of the acquisition. I don't know if that any expectations in terms of timing for a closure point of view. These are discussions which are ongoing, and there are multiple questions which are ongoing.
Speaker Change: So, 6 to 12 months could potentially be the timeline for a fungibility event. As I said, given that there are multiple regulators involved in this,
Speaker Change: It could be a lengthier process, but our best estimate at this point, based on the advice that we have from the council that we have in different jurisdictions, it is an event which could take up to 12 months.
Unknown Executive: Are endeavour to the revenue part? If I look at, you know, I can guide you to what we've said from a India IPO time, the PMR, the approximately $3 million or an acquisition or for multiple acquisition, whether this sounds like into one or multiple acquisition will be, you know, once it's crystallized, it will be able to share more details on that. There is no commitment in terms of that there is an acquisition, which is actively going to happen in the near future.
Speaker Change: Okay, all right, and then...
Speaker Change: So, the multiple entities that are involved, so you probably have the SEC and you probably have SEBI. Is there other regulatory agencies or bodies that need to sign off?
Dhruv Shringi: But, um..., that needs to sign off. So these are the two main bodies; there is the SEC and then there is SEBI. There will also be, you know, tax clearances, etc., which will be needed. In India, depending on the structure that we adopt, or it could also be Indian courts if it's a merger structure that we adopt. So there are a couple of options that we are working closely with. And in each one of them, there are different sets of regulators that have been involved in the past.
Speaker Change: So these are the two main bodies, there is the SEC and then there is SEBI, there will also be you know tax clearances etc which will be needed.
Unknown Executive: Okay, so, but all right. But you have aspirations to close and deal that I will assume. And so, in the number, was that $2,9 million, what you would pay or the revenue that you would like to add? So, $20 million is what you have set aside as IPO proceeds in terms of an acquisition. Okay. So, you know, after $20 million, would these eventually the payouts for acquisitions? This could be over acquisition or this could be for multiple acquisition.
Speaker Change: in India, depending on the structure that we adopt. Or it could also be Indian courts, if it's a merger structure that we adopt. So there are a couple of options that we are working closely with. And in each one of them, there are different sets of regulators that are involved in the process.
Dhruv Shringi: As you rightly also pointed out, this is our family's unique scenario. There aren't enough precedents of a scenario like this that one can look at and use that as a basis of saying, here is a more definitive timeline for doing something like, Okay. And I guess by doing this, you will eliminate some overhead costs, filing costs, legal costs, and management costs. Would you collapse the boards?
Speaker Change: As you rightly also pointed out, this is a fairly unique scenario. There aren't enough precedences of a scenario like this that one can look at and use that as a basis of saying here is a more definitive timeline for doing something like this.
Unknown Executive: Can you use stock also, or is it 99.9? You have to call out what are the end users of the IPO proceed, and then the end users and the end in the IPO leave the amount, play approximately $12 million for IPO or for our conditions. Okay, and you would use cash solely, or could you stock also, and buy more revenue? Yes, so we could use stock as well. That is nothing that we'll just back from doing.
Speaker Change: Okay and I guess by doing this you will eliminate some overhead costs, filing costs, legal costs.
Dhruv Shringi: Maybe you have some board costs that are eliminated. Do you roughly have an estimate of how much costs would be eliminated associated with a collapse? of the listings if that were to occur. Sure. So today there's approximately $2 million to $2.5 million of cost which is associated with being a US listed entity; that cost would go away on the collapse of this. A large part of that cost will go away on the collapse of this.
Speaker Change: Management costs, would you collapse the boards? Maybe you have some board costs that are eliminated. Do you roughly have an estimate of how much costs would be eliminated associated with a collapsing...
Speaker Change: of the listings, if that works or occur.
Speaker Change: So today there is approximately $2 million to $2.5 million of cost which is associated with being a US listed entity.
Unknown Executive: Our stock, not a cash fee. Yeah. Okay, got it. All right. In the timing, I mean, how long have you been active? Like, I guess like, you know, why don't you have an idea on timing? So I'll be on question. Is there any blinded bitters and active acquisition, which is ongoing?
Speaker Change: Thank you very much.
Dhruv Shringi: Okay, all right. And then just on the expense management product, could you just talk briefly about it? So it sounds like it's. Did I get that right that you said that you may see some revenue, was that revenue from newly added corporate customers or expense management? I didn't hear that clearly.
Speaker Change: Okay, all right.
Speaker Change: And then, on the expense management product, could you just talk briefly about, so it sounds like it's.
Speaker Change: Did I get that right that you said that you may see some revenue? Was that revenue from newly added corporate customers or expense managers? I didn't hear that clearly.
Unknown Executive: And I'm gratifying that, you know, I can either confirm, not an IA, cash fee, but there's an active acquisition conversation that is going on. Okay, all right.
Cobb Sadler: When do you think the revenue could actually start to... be somewhat meaningful? And then I have a follow-up on steps manager, the person we've talked a lot about.
Speaker Change: When do you think expense management, the revenue, could actually start to be somewhat meaningful?
Unknown Executive: Let's hear it.
Unknown Executive: And then on the fungibility of shares, did I give this right? You said six to 12 months, do you think you have an answer there? Or is that an answer to, was that a, was that a, the question was, how long will it take you to, or my question is, how long will it take you to know whether or not the shares will be fungible? And the other question is, what do you think that the Indian investor base would think about that?
Speaker Change: And then I have a follow-up on scripts management. The first one is the time I read it.
Dhruv Shringi: So, for the revenue to be material on the expense management front, I think we are looking at more like next fiscal year for the revenue to be material. At this point in time, we are going through a process where we are conducting trials with our customers. We are offering it to some of our customers as an initial bundled proposition for a period of time where it's free to use, right, or there is a premium kind of service which is there that certain features are available to them, free to use, and beyond that, then they have to look at a pricing model.
Speaker Change: So for the ready-made-to-be material...
Speaker Change: on the Expense Management Fund. I think we are looking at more like next fiscal year.
Speaker Change: for the review to be material.
Speaker Change: At this point of time, we are going through a process where we are inducing trials with our customers.
Unknown Executive: I mean, I'm guessing they don't, the structure, if I understand it, you're kind of the first dual listing company in India. And so my guess is they're all confused, as probably all investors are about, about the structure.
Speaker Change: We are offering it to some of our customers as an initial bundled proposition for a period of time where it is free to use or there is a premium kind of service which is there that certain features are available to them free to use and beyond that then they have to look at a pricing model.
Dhruv Shringi: So, for this year, at least, I feel it's going to be relatively immaterial from an earnings point of view, but next fiscal year, it will become more relevant. So today, the focus is trying to make sure that we can get a larger install based on the expense side, as opposed to looking at monetizing that on day one. Okay, and the product, you know, is it in some way? Is it? Yeah. I believe you said that you're going to target both, but initially, and the way software particularly works, SMB. Is it fully featured?
Unknown Executive: So you think that would be a positive for them if you were able to collapse the structure, but that's one question. And then do I have it right that you think that fungibility, if it were to occur, would occur within six to 12 months? Yeah, so in terms of the second part, based on the discussions that we've had with various advisors across multiple jurisdictions, six to 12 months could potentially be the timeline for a fungibility event.
Speaker Change: So, in this year, at least, I feel it's going to be still relatively immaterial from an earnings point of view, but next fiscal year, it will become more relevant. So, today, the focus is trying to make sure that we can get a larger install base on the expense side as opposed to looking at monetizing that on day zero.
Speaker Change: Okay, and the product, you know, is it kind of a, is it a...
Speaker Change: I believe you said that you're going to target both, but initially in the way software particularly worked is SMB. Is it fully featured? I mean, so I guess, is your comp...
Unknown Executive: As I said, given that there are multiple regulators involved in this, it could be a lengthy process, but our best estimate of at this point based on the advice that we have from the council that we have in different jurisdictions, it is an event which could take up to 12 months. Okay, and then the multiple in these that are involved, so you probably have the SEC and you probably have SEBI, is there other regulatory agencies or bodies that need to sign off?
Dhruv Shringi: I mean, so I guess is your comp or competitor Zaggle, a Zaggle-type company? And are your features and functionality similar to the more fully featured suites, or is it kind of a basic product to start for S&B that don't want to pay for something like Zaggle or another competitor? So today, the product is in a situation where I initiate for it can definitely compete with the likes of them in terms of the expense.
Speaker Change: competitor, Zaggle, a Zaggle type company and are your features and functionality similar to
Speaker Change: The more fully featured suites or is it kind of a basic product to start for S&B that don't want to pay for something like Daggle or another competitor?
Dhruv Shringi: What we are looking at out here is a solution that uses a lot of new Gen AI large language models for receipt analysis, which is much more advanced than the older models or older tools which use OCR based recognition. OCR based recognition, by its very nature, has a limited amount of accuracy.
Speaker Change #100: So, today the product is in a situation where or in a shape where it can definitely compete with the likes of Garmin.
Unknown Executive: So these are the two main bodies, there is the SEC and then there is SEBI. There will also be tax appearances, etc, which will be needed in India, depending on the structure that we adopt, or it could also be Indian courts, if it's a merger structure that we adopt. So there are a couple of options that we are working closely with and in each one of them, there are different types of regulators that are involved in the process.
Speaker Change #101: in terms of the expense side of things. What we are looking at out here is a solution which uses a lot of the new Gen-AI large language models for receipt analysis, which
Speaker Change #101: is much more advanced than the older models or older tools which use OCR based recognition.
Dhruv Shringi: Whereas the LNM models, because of this, are self-learning aspects of this and tend to be much better in terms of analyzing the expenses and capturing of the data. So we feel that the solution is very comparable with the other population products which are available today. The advantage which is there is that it comes in as a tightly next or can be offered as a tightly next solution between travel and extent, or it can be sold singularly as an extent solution as well.
Speaker Change #101: OCR-based recognition by its very nature has a limited amount of accuracy.
Speaker Change #102: Manish Hemrajani, Rohan Mittal, Manish Hemrajani
Unknown Executive: As you like, you also pointed out, this is a fairly unique scenario. They don't have enough visitors of a scenario like this that one can look at and use that as a basis of saying, here is a more definitive timeline for doing something like this.
Speaker Change #103: The advantage which is there is that it comes in as a tightly knit or can be offered as a tightly knit solution between travel and expense or it can be sold singularly as an expense solution as well.
Unknown Executive: Okay. And I guess by doing this, you will eliminate some overhead costs, filing costs, legal costs, management costs. Would you collapse the boards, maybe you have some board costs that are limited? You know, you roughly have an estimate of how much, how much cost would be eliminated associated with the collapsing of the listings, is that worth our curve? So today there's approximately two million dollars to two and a half million dollars of cost which is associated with being the US listed entity. That cost would go away on collapsing of the structure, large part of that cost would go away on collapsing of the structure.
Dhruv Shringi: So that is the advantage that we are offering to customers, especially those who are our existing customers, so they can provide a more seamless experience between travel and expense for their employees. Okay, all right. And then just go back to the fun to be already, I guess.
Speaker Change #103: So that is the advantage that we are offering to customers, especially those who are our existing customers, that they can provide a more seamless experience between travel and expense for their employees.
Unknown Executive: Okay. All right.
Speaker Change #104: Okay all right and then just back to the fungibility I guess you have some some investors US investors that have FBI licenses that can actually just as I understand it can actually just take Indian shares and then
Cobb Sadler: You have some investors, US investors that have FDI licenses that can actually, as I understand it, can actually just take Indian shares and then, you know, hold them, buy more, sell some, whatever. And then you have some US investors that do not have FDI licenses; they're smaller. And so how would that work with them? They would, would you have, would Indian investors acquire the U.S. shares? from if they want to sell it to US investors?
Speaker Change #105: hold them, buy more, sell some, whatever. And then you have some U.S. investors that do not have FDI licenses, they're smaller. And so how would that work with them?
Unknown Executive: And then on the expense manager product, could you just talk briefly about it. So it's not like it's. Did I get that right that you said that you may see some revenue. Was that revenue from from from newly added corporate customers or expense manager. I didn't I've been here that clearly.
Cobb Sadler: Or will there be some sort of offering, or would there be some sort of private equity firm that would come in? And I'm just guessing overall, you know, the marginal Indian investor would be more likely to acquire shares. I mean, I'm assuming there are some Indian investors that don't like the structure and would then want to add or buy for the first time shares.
Speaker Change #106: Would Indian investors acquire the U.S. shares?
Speaker Change #107: from, if they wanted to sell, of U.S. investors, or would there be some sort of...
Unknown Executive: When do you think expense management, the revenue could actually start to be somewhat meaningful. And then I have a follow up on some steps manager. So for the revenue. So for the revenue to be material on the expense management, I think we are looking at more at like next fiscal year for the revenue to be material. At this point of time, we are going to a profit where we are inducing trial with our customers.
Speaker Change #107: offering or would there be some sort of private equity firm that would come in?
Speaker Change #107: I'm just guessing overall, you know, the marginal Indian investor would be more likely to acquire shares. I mean, I'm assuming there's some Indian investors that don't like the structure and would then want to add. I'm assuming there's some Indian investors that don't like the structure and would then
Dhruv Shringi: And so, that should be a very, very positive event. But I guess going back to the FBI situation, how would you handle it? If they have an FBI license, not a problem, but if they don't have one, then what do you do?
Speaker Change #107: or buy for the first time shares.
Speaker Change #107: and so
Speaker Change #108: That should be a very, very positive event. But I guess going back to the FBI situation, how would you handle, if you have an FBI license, not a problem, but if you don't have one, then what do you do?
Unknown Executive: And we are offering it to some of our customers as an initial bundle proposition for a period of time, where it's key to use right or there is a female kind of service which is that what teachers are available to them to use and beyond that. Then they have to look at a final model. So in this year, at least I feel it's going to be still relatively in material from our earnings point of view, but next fiscal year it will become more relevant. But today, the focus of trying to make sure that we can get a larger install base on the extent time as opposed to looking at monetizing that on day zero.
Dhruv Shringi: So if that, that loudspeaker is set, we go down calm. At that point, we can also see what assistance we can provide Chantanal, as well as the sponsor of this program, IndiaShare.
Speaker Change #108: Thank you.
Speaker Change #109: two local bankers out here.
Speaker Change #110: to make sure that you know the shareholders are able.
Speaker Change #111: to get access to the shares. So that's something that you know we will try and do from our side, but it's only something that will come up.
Speaker Change #112: much closer to once the option gets finalized. And we will factor this into our decision-making process as well, as to how easy or difficult would it be for the shareholders to get access to the India share.
Unknown Executive: Okay, and the product. You know, is it kind of a, is it. Yeah, I believe you said that you're going to target both, but, but, but, but initially and went in the way software and typically worked is SMB. Is it fully fully fully featured? I mean, so I guess it is your comp or competitor. Zaggle, a Zaggle type company and your featured in functionality similar to the more fully featured sweets or, or is it kind of a basic product to start for this for SMB that don't want to pay for something like Zaggle or another competitor.
Dhruv Shringi: Okay, all right. Well, that sounds good. I mean, that's a major net positive, in my opinion, because the US shares are trading at a huge discount.
Cobb Sadler: So good luck in collapsing that. Thanks. Thank you. The only word of caution that I want to put out there for a 100-season is that, from a timing point of view, it is a slightly lengthy process.
Speaker Change #113: Okay, that sounds good. I mean that's a major net positive in my opinion because the US shares are trading at a huge discount. So good luck in collapsing that. Thanks.
Speaker Change #114: Sure, thank you. The only word of caution that I want to put out there for abundant reason is that from a timing point of view, it is a slightly lengthy process. So I want to just let that out there be so that from an expectation setting point of view, we don't set the wrong expectations with shareholders.
Dhruv Shringi: So I want to just let that out there so that from an expectation setting point of view, we don't set the wrong expectations at share only. I understand that, but you did say six to 12 months. That's right, that is right, so that's the kind of sign that you're working towards, based on advice from advice.
Unknown Executive: So today, the product is in a situation where I initiate for it can definitely compete with the likes of them. In terms of the expense by the thing. What we are looking at out here is a solution which uses a lot of the new gen AI large language models for receipt analysis, which is much more advanced than the older models or older tools which use OCR based recognition. OCR based recognition by its very nature has a limited amount of accuracy, whereas the LNM models because of this are self learning aspects of their.
Speaker Change #115: I understand that, but you did say six to twelve months.
Speaker Change #115: That's right. That is right. So that's the kind of timeline that we are working towards based on advice from advisors.
Cobb Sadler: Okay. Roger that. Thank you. Thank you. Thank you. If you would like to ask a question, please press star followed by one on your telephone keypad now. When preparing to ask your question, please ensure your device is on a muted loop.
Speaker Change #115: Okay, roger that. Thank you.
Speaker Change #115: [inaudible]
Speaker Change #116: Thank you. If you would like to ask a question, please press star followed by 1 on your telephone keypad now. When preparing to ask your question, please ensure your device is unmuted locally.
Unknown Executive: And tend to be much better in terms of analyzing their expenses and capturing the data. So we feel that the solution is really comparable with the other market proposition that are available today. The advantage which is there is that it comes in as a tightly net or can be offered as a tightly net solution between travel and extend or it can be sold singularly as an extent solution as well. So that is the advantage that they are offering to customize especially those who are are existing customers, but they provide a more senior experience between travel and expense for their employees.
Amish Mahel: The next question is from Amish Mahal. The line is now open, please go ahead. Thanks for taking my additional question. Just a question on the buyback of U.S. shares. You had completed a buyback of $5 million. Is there any reason why the number should not be higher considering the steep discount and the best use of corporate funds? I realize it's a board decision, but I wanted to know whether there's a rationale for capping it at $5 million.
Speaker Change #116: The next question is from Amish Mahal. The line is now open, please go ahead.
Amish Mahal: Thanks for taking my additional question. Just a question actually on the buyback of the U.S. shares. You had completed a buyback of $5 million. Is there any reason why the number should not be higher concerning the...
Speaker Change #118: Thank you.
Dhruv Shringi: There is no capping on that. It's just, you know, that as we go through this process, we are evaluating multiple options, and we might also need to conserve some cash for doing their not only such things that we spoke about.
Unknown Executive: Okay, all right, and then just back to the fund's ability, I guess. You have some investors, US investors that have FBI licenses that can actually just, as I understand it, can actually just take Indian shares and then, you know, hold them by more, sell some, whatever, and then you have some, that some of the US investors that do not have FBI licenses, they're smaller, and so, how would that work with them?
Speaker Change #119: There is no capping on that. It's just, you know, that as we go through this process, we are evaluating multiple options.
Speaker Change #120: and we might also need to conserve some cash.
Dhruv Shringi: So once we have greater clarity on the route that we are going down, at that point, we can evaluate if the buyback needs to be expanded, or we do this in one go as part of the restructuring. Okay, thank you. That's very clear. Thank you. As we currently have no further questions, I will now hand back to the management team for closing remarks. Thank you everyone for joining the call today. As always, we are available for follow-up. Please feel free to reach out for the same.
Speaker Change #121: for doing the larger restructuring that we spoke about.
Speaker Change #122: So once we have greater clarity on the route that we are going down, at that point we can evaluate if the buyback needs to be expanded or we do this in one go as part of the restructuring.
Speaker Change #122: Okay, thank you. That's very clear.
Unknown Executive: They would, would you have, would Indian investors acquire the US shares from, if they want to sell, of US investors, or would there be some sort of offering, or would there be some sort of private equity firm that would come in? And I'm just guessing overall, you know, the marginal in the Indian investor would be more likely to acquire shares. And I'm assuming there's some Indian investors that don't like the structure, and would then want to add or buy for the first time shares.
Speaker Change #122: Thank you.
Speaker Change #123: As we currently have no further questions, I will now hand back to the management team for closing remarks.
Unknown Speaker: KK, you can now close the call. Thank you. Thank you. This concludes today's conference call. You may now disconnect your line. Thank you for watching, and I'll see you in the next video.
Speaker Change #123: Thank you everyone for joining the call today. As always, we are available for follow-ups. Please feel free to reach out for the same. Kiki, you can now close the call. Thank you.
Kiki: Thank you.
Kiki: Thank you. This concludes today's conference call. You may now disconnect your lines.
Unknown Executive: And so, that should be a very, very positive event. But I guess going back to the FBI situation, how would you handle, if you haven't at the FBI license, it's not a problem, but if you don't have one, then what do you do? So, if that, that's allowed to be there, that's where you go down the car. And that's what you can also see, you know, what assistance we can provide, who local bankers out here, who make sure that you know the shareholder that you do, you get access to the share.
Mooji: Satsang with Mooji
Unknown Executive: So, that's something that, you know, we will sign these from our side. So, this will be something that will come up, much closer to once the option gets my life. And we will factor this into our decision-making process as well. As for how easy or difficult would it be for the share and all this to get access to the index share?
Unknown Executive: Okay, well, that sounds good. I mean, that's a major net positive, I might be in the case of the U.S, here, there's a huge discount. So, good luck in collaboration with that. Thanks. Yeah, thank you.
Unknown Executive: We only wrote a question that I wanted to go out there for a one-to-one decision. Is that something that's timing for interview? It is a, I'd like you, then, T has also. So, I wanted to just let that out there be. So, that's from an expectation, setting for interview, we don't set the long expectation that shareholder. I understand that you did say six and twelve months. That's right, that's right. So, that's the kind of time that we're working towards based on advice from advice. Okay. Roger that. Thank you. Sure, thank you. Thank you.
Unknown Executive: If you would like to ask a question, please press star followed by one on your telephone key bed now. When preparing to ask your question, please ensure your devices are new to locally.
Amish Mahal: A nice question is from Amish Mahal. The line is now open, please go ahead. Thanks for taking my additional question. Just a question actually on the buyback of the U.S, shares. You had completed a buyback of $5 million. Is any reason why the numbers should not be hired, consuring the steep discount and the best use of corporate funds. I realize it's a board decision, but I wanted to know whether there's a rationale for capping it at $5 million.
Amish Mahal: There is more capping on that. It's just that as we go through this process, we are evaluating multiple options and we might also need to conserve some cash for doing the larger restructuring that we spoke about. So once we have gracious clarity on the rules that we are going down, at that point, we can evaluate if the buyback needs to be expanded or we do this in one more part of the restructuring.
Unknown Executive: Okay, thank you. Let's look here. Thank you.
Unknown Executive: As we currently have no further questions, I will now hand back to the management team for closing remarks. Thank you, everyone, for joining the call today. As always, we are available for follow-ups. Please feel free to reach out for the same. Tiki, you can now close the call. Thank you.
Unknown Executive: This concludes today's conference call. You may now disconnect your lines.